Best Buy earnings plummet 77%, will offer buyouts to employees

Best Buy reported on Tuesday its earnings for Q3 2008 which, despite a strong Black Friday showing, were abysmal. Best Buy pulled in a meager $52 million in earnings or 13 cents per share which is a 77% drop from the same quarter last year during which Best Buy raked in earnings of $228 million, or 53 cents a share. Best Buy did not even come close to meeting Wall Street’s expected earnings of 24 cents per share which were adjusted downward from Q3 2007 to reflect the slowdown in the economy. As result of this poor Q3 2008 showing, Best Buy CEO Brad Anderson has announced that Best Buy will be offering voluntary buyouts to all 4,000 of its employees. If a sufficient number of buyouts are not taken, then layoffs may ensue. In addition to cutting back on its workforce, Best Buy also plans on cutting expenditures in half and delaying new store openings. Not so good end of the year news for Best Buy and its employees but as always, we feel for all of those who will be affected by this announcement.